The gold reserves of the Central Bank of the United Arab Emirates rose 7% in January to AED24.571 billion ($6.69 billion), up from AED22.981 billion in December 2024, according to data from the central bank’s monthly statistical bulletin.
The rise in gold holdings was part of a broader increase in the banking sector’s liquidity indicators.
Demand deposits grew to AED1.116 trillion at the end of January from AED1.109 trillion the previous month. Local currency deposits accounted for AED834.9 billion of the total, while deposits in foreign currencies reached AED281.5 billion.
Savings deposits rose to AED322.3 billion, up from AED317.5 billion at the end of December. Of this, AED270.8 billion were held in dirhams and AED51.5 billion in foreign currencies, reflecting continued savings growth in both local and foreign denominations.
Fixed-term deposits also saw gains, reaching AED926.2 billion in January. Local currency deposits made up AED552.5 billion, while foreign currency deposits stood at AED373.7 billion.
The UAE banking sector’s net international reserves increased to AED1.466 trillion at the end of January, up from AED1.446 trillion a month earlier, underscoring the sector’s strengthened external position.
The monthly increases in deposits and reserves point to rising confidence in the banking system, supported by stable oil prices and continued public and private sector investment. The growth in gold holdings aligns with a broader trend among central banks globally to diversify reserve assets amid geopolitical and economic uncertainties.
The data reflects strong balance sheet expansion and sustained liquidity across the UAE banking sector, positioning it to support further credit growth and economic activity through the first quarter of 2025.
The rise in the UAE Central Bank’s gold reserves and overall deposit base in January signals growing confidence in the local banking system and broader economic resilience.
The uptick in savings and fixed-term deposits suggests households and businesses are strengthening their financial positions, while the increase in international reserves reflects robust external liquidity.
The gold reserve expansion, though modest, aligns with global central banks’ efforts to hedge against inflation and geopolitical risk. Together, these indicators point to a stable macroeconomic environment, giving the banking sector a solid foundation to support lending and investment as the year progresses.